, 1887-04-28
The Pacific Railroad Commits
sion at Work.
Huntington Gives q Little His.
tory Of His Road.
He Shows What 1t Costs to EEK.
plain" and Educate"

New YORK, April 27.--In the Pa
cific railroad investigation to-day, in
the case of the Union Pacific, Hunt
ington said they commenced building
the road with small contractors, and as
they did not get along very well with
the construction the contract was let
to Mr.. Crocker. This was within
about one year after the passage oil
the act of 1862. Money for the con-
struction was provided for by contri-
button. From the time the road was
commenced to the time of its compile
ton the prices of material went up
from 200 TO 800 per cent. Iron Was
$3.50 per ton. Locomotives cost $4,000
and before they got through as much
as $4,000 was paid for them.
They paid in gold for all
supplies and that was how they came
to stand still for funds to continue its
construction. Garrison and DR.. Mills
were asked TO join in the enterprise,
but they could not see their way to
safe investment. At this time Senator
Stanford and Mr.. Crocker were owners
of most OF the stock OF the contract
and finance Of the company, which
was organized to continue the build
ing Of the road. Witness then de-
scribed the difficulties under which
they labored before the different
branches, which now constitute the
main line, were put through. In the
seventies they purchased steamboats,
to run in connection with
the road from San Francisco
and other points on the coast.
They were part Of the purchase of the
California Pacific, which they bought.
Then the steamers were sold to the
Central Pacific, to be used as ferry
boats. He did not know how the
transfer came about, the price paid, or
what effect il had ON the market price
of the stock OF the road he was inter-
ested in. The Central Pacific, he
thought, was operating those steamers
to-day. There was not much profit on
them. The California & Oregon was
consolidated with the Central Pacific.
The California and Oregon ran from
Portland to San Francisco and was an
Oregon company operation. The con-
struction was commenced in 1868, the
land grant was made in 1866 and the
consolidation was effected about 1870.
After the consolidation the
Pacific improvement company
went on with the construction OF the
California and Oregon to Redding.
Resuming he stated that much stock
of the company was sent to the con-
tract and finance company before the
act Of 1882, and again that it was his
impression that there was not any
stock issued. The law required that
10 per cent. should be put up before
they could organize. Contracts were
paid partly in stock and partly in cash.
The cash was produced by individuals.
They were not paid by the money
subscribed for stock. This afternoon
G. P. Huntington stated that the COM
pany's lawyer at Washington was
paid $4,000 per year salary and was
allowed from $4,000 TO $4,000 to
explain" to the people in Wash
ington that it was to the
advantage Of the pnblic and
not to the company he was interested
in that the company's schemes should
be approved in congress. General
Trouchet was their counsel for many
years. Their counsel was never asked
what he did with the money, nor was
he called upon to produce vouchers.
If he asked for $4,000 he could have
it, because witness knew it would be
put to good use. Mr.. Huntington
told the commissioners they had no
idea how many people there were in
Washington TO whom il was necessary
to explain" The commissioners ex-
nreeaed aurpria4 that No yol,chera
were taken for such large expendi-
lures. The balance sheets published
in annual Statements Of the company
were produced, and Mr., Huntington
was asked to explain an item of
$83 600 in The statetnent of 1878
for Legal expenses. Witness said.
that che coulda only offer.
the ssome explsnation that
he had already given that tho money
was used. in "explnii54g" things at
Washington. The cdmpany had to
educate" people in Washington they